What happens if you die

Discussion in 'Wills & Estate Planning' started by bob shovel, 12th May, 2016.

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  1. bob shovel

    bob shovel Well-Known Member

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    Fun happy topic time :)

    So what happens if you die? Is there a plan? Are you the main investor? Is there a plan for your investments and how significant others will manage it or gift it or sell it off ?

    I'm not really talking about the Will side of things (plays a part though) but what's going to happen to investments if you kicked the bucket?

    I am the main investor and if i went i would want my family to continue investing somehow rather than stagnating or getting the wrong advice from family -default option would be to sell rather than educate.

    I'm not sure what happens but I'd want what i started to continue, obviously the strategy and goals change slightly but just don't want it to fall apart. Obviously there would be some income issues and other challenges

    What are your plans? Not a cheery topic but definable shouldn't be ignored
    Can i get pc to make future investment decisions On my behalf? :D
     
  2. spludgey

    spludgey Well-Known Member

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    I'll be dead, my loved ones can do with what they want with my estate (that makes it sound pretty impressive).

    Maybe I should have a talk to my wife about it at some stage. I figured that she'd just sell them all, as she doesn't really have anything to do with the IPs now due to not wanting to.
    If she did this, she'd have the PPOR and be debt free.
     
  3. bob shovel

    bob shovel Well-Known Member

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    Wow! :cool:
    I was just talking about my footy cards!
     
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  4. spludgey

    spludgey Well-Known Member

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    I only have Magic the Gathering cards and I'm pretty sure the wife doesn't want those!
     
  5. Chrispy

    Chrispy Well-Known Member

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    I have spoken to my son about this. His answer was he would simply keep what I have and try to manage them the way I do. I told him, he would be better off just selling them, one a year, and live off the money. :)
     
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  6. Hodor

    Hodor Well-Known Member

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    IF you die? How about WHEN. Just to keep things positive.

    My partner gets the lot, she can do what she wants. I'll be too dead to care.
     
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  7. bob shovel

    bob shovel Well-Known Member

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    Couple of you need to have a chat. What if your holding a number of properties pre boom and you go belly up then the fam sell it all off for some one else to get the cream. There's potential for some significant increase in value which could make life easier just by holding off selling for 2 years.

    Something to think about. .
     
  8. EN710

    EN710 Well-Known Member

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    I will be dead within 100 years. and most people I know would to... not sure it will be relevant when I'm no longer here? the only time I'd be worried is when I will be leaving someone I really cared about for decades before they karked too
     
  9. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    This is an important topic especially where 1 spouse does all the investing and the other spouse has not really taken an active part. Would they know how to access documents, deal with banks etc.

    Keep in mind that when someone dies and their property is passed on any loans secured by the property don't get reassigned to the beneficiary - they will either have to requalify or to pay these loans out.
     
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  10. Biz

    Biz Well-Known Member

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  11. willair

    willair Well-Known Member Premium Member

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    All i have is a simple will and a letter in the safe,all the property titles are held in one bank,and as we have been through 5 Accountants over our entire investment span,3 passed away one retired,and one just went missing and never came back,plus we have talked about this around the dinner table a few times over the past few years,all our daughters know what i do,they know the downfalls and the upswings,that's the problem with being over 60,you start to circle the drain a bit quicker..
     
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  12. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    This key issue is often overlooked and may not always be straight forward. It could create complexity.

    eg Dad passes away and leaves an estate comprising a home in Vaucluse worth $4m an two IPs with loans against them LVR at 50%. Beneficiaries are a son aged 18 and a 30yo daughter married with three kids and a deadbeat boyfriend doing it tough financially. One property worth $250K is a unit in Mt Druitt and another is a QLD house and land.

    How do you split that up ?
    Will they want to be tenents in common ? Probably not.
    Neither may be able to buy out the other AND retain property

    One of the worst things you can do is leave a proportionate interest in properties to siblings. They will have different needs and objectives and unless they want to be jointly and severally tied at the hip it could pose a large concern. eg Daughter may just want cash or buy her own home BUT the issue of the bf could expose her share to risk. Then leaving one property to each may not work either. And capacity to borrow needs to be determined. Loans can also affect estate distribution as the bank may want a fast refinance meaning a delayed distribution may not work well.

    Many reasons also why a sole executor especially a third party can be a fail. eg The State Trustee may just liquidate the lot and to hell with asking what beneficiaries want.
     
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  13. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    You would also be trapped with extra stamp duty and CGT if not careful.

    eg. leave 2 properties to 2 children jointly. Child A, after death, decides he wants property1. Child B wants property2, so they transfer title. This would result in both stamp duty and CGT being payable.

    A way around this would be to build some flexibility into the will. the executor may be able to give 50% of the estate to each without the exact portions of specific properties being specified in the will.
     
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  14. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Besides wills, power of attorneys and testamentary and bloodline trusts we have 2 executors. The younger of the 2 executors (my brother) I am slowly schooling but he has my Dad as co-executor for advice and a second opinion on 'what do you think they would have wanted'.
    Hopefully they will continue it on but if they don't then they don't.
     
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  15. spludgey

    spludgey Well-Known Member

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    I just started doing my will due to this thread.
    I don't know whom to leave my tools to? The only other handy person in my family (that's in Australia anyway) is my dad and he's got more than enough already...
     
  16. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Tools go to local Mens Shed
    Footy Cards will be posted to Eddy Macguire :p
     
  17. bob shovel

    bob shovel Well-Known Member

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    Haha don't worry about the houses! Do you have kids or are they in the works? They makes you think a little more!
    And when kids get older it gets even more messy as terry and Paul mentioned! Thanks guys....

    You can't just cut a property in half or simply sell and get the cash they're worth. It all requires another plan and strategy! I think my would carry on but she would be almost starting from scratch learning. I have explained how good delegating the hard stuff is- pm, insurance, broker etc. So that's a start. She'll work it out.

    @myf you have some boots to fill! Is your brother also investing for himself while he learns?
     
  18. spludgey

    spludgey Well-Known Member

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    No children yet, though possibly trying towards the end of the year. So the wife would get all important assets. If we had a child/children and we both died, I'd get my mum to make the decisions and if she was getting too old for it, then I would get my sister to look after things instead.
     
  19. bob shovel

    bob shovel Well-Known Member

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    Is there a way too buy some time, rather than executors jumping in and doing what they think is best. Say, is it possible to employee a person to manage the portfolio for 12 months while he family can read up on investing and get some decent advice and time to think rather than quick decisions
     
  20. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Executors don't have much leeway as they have to follow the terms of the will. By law probate should be applied for within 12 months of the death, but if the probate isn't applied for within 3 months then the NSW trustee or a creditor or any person named in the will can apply to be made executor. (NSW law)

    So it is not a good idea to wait.